BASF sales meet forecasts, EBITDA slightly below; dividend maintained

Published 28/02/2025, 08:42
© Reuters.

Investing.com -- BASF SE (ETR:BASFN) reported its fourth-quarter 2024 earnings on Friday, posting a mixed performance across its business segments. 

The company posted an adjusted EBITDA of €1.57 billion, slightly below market expectations but in line with its prerelease.

Total (EPA:TTEF) group sales for the quarter came in at €15.86 billion, marking a 3% increase compared to Jefferies’ estimate of €15.36 billion and aligning closely with consensus forecasts. 

Organic sales growth stood at 1.5%, driven by a 1.6% increase in volumes, partially offset by a 0.1% decline in pricing. Currency effects weighed down sales by 1.2%.

BASF’s Chemicals division faced pressure, with adjusted EBITDA plunging 51% year-over-year to €103 million, sharply missing estimates. 

The decline was attributed to weaker performance in petrochemicals and intermediates, as well as higher costs associated with its Chinese operations. 

In contrast, the Agricultural Solutions segment posted a robust 35% year-over-year increase in adjusted EBITDA to €294 million, significantly outperforming market expectations by 68%.

The Materials segment, which includes performance materials and monomers, recorded adjusted EBITDA of €365 million, 16% below consensus. 

Meanwhile, Industrial Solutions posted a 27% drop in adjusted EBITDA to €208 million, while Surface Technologies remained relatively stable at €312 million.

Despite the mixed quarterly performance, the chemical producer reaffirmed its full-year 2025 adjusted EBITDA guidance in the range of €8 billion to €8.4 billion, reflecting an expectation of moderate demand growth. 

Free cash flow for the year is projected between €400 million and €800 million, incorporating a €400 million working capital build in China. 

Jefferies estimates full-year free cash flow at €850 million, slightly above the upper end of the company’s guidance.

The company maintained its dividend at €2.25 per share, consistent with its September guidance.

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